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JCB to relocate making of compaction equipment to India

The Hindu BusinessLine:  March, 2014

Hyderabad: JCB has today announced plans to relocate production of compaction equipment to factories in the UK and to Pune, India and close the Gatersleben site in Germany.

The decision has been taken to improve JCB’s competitiveness in the compaction sector. Demand for compaction equipment has been improving in overall terms in recent years but the emerging markets now account for the bulk of demand.

JCB has decided that by the end of June 2014 production of all VM compactors and two larger VM Tandem Rollers will relocate to JCB’s factory in Pune. Production of all walk-behind models and two smaller VM Tandem Rollers will relocate to the JCB Attachments factory in Uttoxeter, England.

Production of the 403 Wheeled Loading Shovel will be brought back to the JCB Utility Products factory in Cheadle, England, where it had been manufactured until 2011.

JCB Chief Executive Officer, Graeme Macdonald, in a statement said: “The decision to relocate production of compaction equipment to factories in the UK and India is right for our business. Demand for compaction equipment has shifted towards emerging markets and manufacturing smaller models in the UK and larger equipment in India is in our customers’ best interests, especially in light of our recent investments in new compaction products.”

“This will improve the competitiveness of JCB in the compaction sector. It will also create a far more sustainable position on which we can build as we grow the business in the future”.

JCB India's MD and CEO Vipin Sondhi, “The demand for larger compaction equipment is growing at a steady rate in India and we will now have flexibility to produce global quality machines in India for our customers in the region as well as for exports”